Where/how can I master price action to trade it profitably?

Discussion in 'Trading' started by AvestroTrades, Feb 6, 2019.

  1. ironchef

    ironchef

    I gather you don't believe in day trading? :finger:
     
    #21     Feb 6, 2019
  2. ironchef

    ironchef

    What is DOM?
     
    #22     Feb 6, 2019
  3. RedDuke

    RedDuke

    Depth of Market, nearest bids and offers, essentially level2.
     
    #23     Feb 6, 2019
  4. CALLumbus

    CALLumbus

    Correct, and even more... for CME contracts, with the right data feed and platform, you even have access to level 3 data (market by order) in your DOM, which will show the position of your orders in the queue.
    For my personal taste, it is not that useful on thinner markets like the NQ or CL, but it has tremendous value in thicker contracts like the ZN.
     
    #24     Feb 7, 2019
  5. Let's say both weekly and fundamentally, the market is in an uptrend. Now when I say fundamentally, I mean previously good news has come out and no bad news say N Korea nukes Washington.

    This news will be reflected in PA where we will see an upward trending chart. However, we want to watch out for major news events since the news can change the trend, so we may not want to keep a trade on for that time period.

    Now let's say in the shorter term time frame, price is trending down. For pros, you may be able to short the shorter term counter trend, or you can wait for indication that the shorter term trend down has reversed back into the longer term trend and then get long.

    The main issue is how to determine stops and targets. Obviously, if you use more contracts, you could take one out sooner and let another run to the next target level, or just use 1 target either shorter term for a higher win % or longer term for more profit.

    The way you make your decision on what to use is reflected in your win %. If you have a very high win% then just go for shorter term targets. If you make some mistakes, you may want to go for longer term targets where in both cases the stop would be the same.
     
    #25     Feb 7, 2019
  6. ironchef

    ironchef

    Thanks.
     
    #26     Feb 7, 2019
  7. RedDuke

    RedDuke

    #27     Feb 7, 2019
    ironchef likes this.
  8. %%
    Good one+ that can be an advantage of paper charts/paper notebook=@ least for swing/position trader; less eyestrain.:cool::cool:,:cool::cool::cool::cool::cool::cool:.In Feb,most likely see some good downtrends in DOW/DIA..... DOW is beating QQQ on the downside.IF my eys star hurting late @ nite, i usually turn off the lights........
     
    #28     Feb 8, 2019
  9. bone

    bone

    With futures ? F No. You can piss away $75K in a year easy trading one lots like a fool.

    With minimal allowable shares in an equity name ? Would be a little more reasonable, but IMO not optimum.

    You need a plan. And you need to work your plan. You need a plan for entering a trade, and you need a plan to manage an open trade position. To trade live money without such a plan is a fool's errand IMO.

    YMMV, I wish everyone good fortune!
     
    #29     Feb 8, 2019
    digitalnomad and piezoe like this.
  10. piezoe

    piezoe

    Probably the best way to profit from price action is to write a book about it. Maybe even a readable book.
     
    #30     Feb 8, 2019